When to file ▲

When to file ▲

The filing due date depends on the trust's tax year-end.

Tax year-end and fiscal period

Graduated Rate Estate

A graduated rate estate (GRE) can have a non-calendar tax year (the period for which the accounts of the estate are made up for purposes of assessment). A GRE will have a deemed tax year-end on the day on which the estate ceases to be a GRE, which will be no later than the day on which the 36-month period after the death of the individual ends.

Later tax year-ends will generally be on a calendar year basis. For example, where an estate is created in June 2021, and is a GRE for 2021, 2022 and 2023, a deemed year-end will occur in June 2024 on the 3-year anniversary of the individual's date of death. The testamentary trust will also have a tax year-end on December 31, 2024.

All other trusts

All other trusts are generally required to use a December 31 tax year-end. However, an exception is available for mutual fund trusts that elect to have a December 15 year-end. A mutual fund trust that previously elected to have a December 15 year-end can revoke the election. For more information, call 1-800-959-8281.

Deemed year-end rules for all trusts

There are other situations in which a trust would be subject to a deemed year-end that may affect its tax year- end. For example, if a trust ceased to be resident in Canada on June 14, 2024, a deemed year-end would be triggered and the trust would be considered to have a tax year from January 1 to June 14, 2024. For more information, call 1-800-959-8281.

Tax tip
For certain testamentary and inter vivos trusts, a deemed taxation year-end will occur upon the death of a particular beneficiary of the trust. For more information on the due date for filing the T3 return and payment of tax for the deemed tax year-end, see Form T1055, Summary of Deemed Dispositions section on page 49.

Tax tip
For Mutual Fund Trusts that filed an election to have a tax year-end of December 15, where the pre-loss restriction event year-end is after December 15 in that calendar year, the NR4 return must be filed within 90 days after the end of that December 15 tax year. In any other case, the NR4 return must be filed within 90 days after the end of the calendar year during which the pre-loss restriction event year-ends.

If you do not have the information slips you need to complete the return when it is due, estimate the income. If, after you receive the slips, you find your estimate differs from the actual amounts, send the slips and a letter to us, requesting an adjustment to the trust's income. For more information, see "Reassessments" on page 25.

Received dates

If you mail the return first class, or if you use an equivalent delivery service, we consider the date of the postmark on the envelope to be the day you filed the return.

When the due date falls on a Saturday, Sunday, or public holiday recognized by the CRA:

• Your return is considered on time if the CRA receives it, or if it is postmarked on or before the next business day

• Your payment is considered on time if the CRA receives it on or it is processed at a Canadian financial institution on or before the next business day

For more information, go to canada.ca/when-file-t3-return.

For information on penalties on late-filed returns and interest on unpaid taxes, see "Penalties and interest" on page 23.

Deadline for distributing T3 slips - You must send the T3 slips to the beneficiary's last known address no later than 90 days after the end of the trust's tax year. If you have the information you need to complete the slips before that deadline, we encourage you to send them to the beneficiaries as early as possible.

Final T3 return

For a testamentary trust that is a graduated rate estate, you have to file the final T3 return and pay any balance owing no later than 90 days after the trust's wind-up (discontinuation) date. Enter the wind-up date on page 2 of the return.

If you wind up a graduated rate estate, the tax year will end on the date of the final distribution of the assets.

If you wind up an inter vivos trust or a testamentary trust (other than a graduated rate estate), you have to file the final T3 return and pay any balance owing no later than 90 days after the trust's tax year-end.

In either case, you should get a clearance certificate before you distribute the trust property. For more information, see "Clearance certificate" on page 27.

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